Using ISO 9001 to Improve Sales Operation Performance - Sik Sumaedi

Using iso 9001 to Improve

Sales Operation Performance
A Case Study of Implementationf ISO 9001

Sik Sumaedi
Lembaga Ilmu Pengetahuan Indonesia (LIPI)
[email protected]

This study aims to examine the implementation of ISO 9001 in order to

improve the sales operation performance of a management training and Abstract
consultancy company. More specifically, this research is to identify the
performance indicators of the company sales operation, ISO 9001based
sales operation management systems, and the comparison of the sales
operation performance before and after the implementation of the
model. This study is an action research using descriptive case study. The
research results show the sales operation performance indicators and ISO
9001based sales operation management system model. In addition, the
finding of this study indicates that the use of ISO 9001 can improve the
performance indicators of sales operation, such as response speed, the
number of prospective customers, customer retention and the number
of new customers.

Keywords: ISO 9001, Sales Operation, Action Research

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T
he ultimate goal of implementing core processes of sales operation include based sales operation management system performed (Van den Berghe, 1997). In this
a n e w s ys te m fo r a co m p a ny search and qualify prospects, sales initial is wished to improve the performance of context, ISO 9001 can be used as a baseline
is to increase company sales and approach, sales approach, presentation and sales operation in term of prospect data for developing a sales management system
profitability. Although, in the present era, the demonstration, overcoming objections, gathering, sales prospecting, and customer operation of an organization.
organization’s performance measurement closing, follow-up and maintenance. maintenance activities.
models such as Balanced Score Card, Service Applying ISO 9001 in an organization is
Score Card, and Six Sigma Score Card tried Sales operation management system ISO 9001:2008 means executed all organization process
also to measure non-financial aspects but itself can generally be divided into three ISO 9001, an international standard for according to ISO 9001 requirements. At that
at the end they finally measure the financial major parts, namely the design of sales quality management systems published in context, ISO 9001 based sales operation
aspects such as sales and profitability. operation, sales force management, and 1987 and revised in 1994, 2000, and 2008, is management system is a way of company
increase sales effectiveness. Designing sales a standard that has been widely accepted. to direct and control its sales operation
This study aims to examine the operation includes setting sales objectives, Based on a survey conducted by ISO in 2005, activities using the requirement of ISO
implementation of ISO 9001 in order to sales strategy, sales force structure, size of this standard has been adopted by more 9001. A company needs to identify all sales
improve the sales operation performance sales force, and sales compensation. Sales than 775 000 organizations in 161 countries operation and its supporting process and
of a management training and consulting force management includes recruitment (Magd and Nabulsi, 2007). mapped to ISO 9001 requirement. All
company. More specifically, this research is and selection of sales force, sales force requirements should be interpreted how
to identify sales operation’s performance training, sales force supervision, sales force Heuvel, Koning, Bogers, Berg, and van it will be perform on the company sales
indicators, sales operation’s management motivation, and sales force evaluation Dijen (2005) explained that the standard operation management system.
systems model, and to evaluate the model (Kotler, 1997). represents an international consensus
implementation results. on good management practices with the To simplify the model arrangement and
Based on above explanation, this research aim of ensuring that the organization easier to be understood by non ISO 9001
This study becomes important because defines the concept of sales operation can continuously deliver the product or practitioners , this research itself will describe
previous researches that studied the and sales operation management system service that meet the customer’s quality the ISO 9001 requirements interpretation
relationship between ISO 9001 and sales as follows. Sales operation is company requirements, meet applicable regulatory as three main processes which are sales
performance are more perception oriented activities to search and qualify prospect, requirements, enhance customer operation core process, supporting process,
that could allow subjectivity findings. In approach prospect from sales opening until satisfaction, and achieve continuous and management process.
addition, another reason for conducting closing, and maintain customer relation in improvement of its performance in pursuit
this research is the lack of research that order to get repeat order. On order words, of these objectives. The Reason of Using ISO 9001
focused in developing ISO 9001 as a sales it could be said that sales operation consists as Sales Operation Management
management system operation model. of three main activities which are prospect One of the advantages of this standard is System Model
Meanwhile the knowledge is needed by data gathering, sales prospecting, and its generic nature that can be applied to There are some reasons for using ISO 9001
companies who want to improve the sales customer maintenance. all organization without depending on the as the baseline system of sales operation
operation management system using ISO type, product, and size of organization (ISO management of an organization. This
9001. Meanwhile, sales operation management 9001, 2008). ISO 9001 can be applied at all argument is justified by analyzing the ISO
system is a system to direct and control levels of an organization or a particular part 9001 requirements contents.
Sales Operation an organization related to sales operation of the organization. A large organization
Sales operation is a part of the marketing activities, including its all supporting usually starts certification with a «pilot First, ISO 9001 provides a sales operation
activities. Kotler (1997) states that the process. From those definition, The ISO 9001 department» prior to certification as a whole management system comprehensive

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framework. ISO 9001 consists of five focused culture. There are some ISO 9001 9001 is adopting Total Quality Management increasing revenue, process improvement
main requirements which are quality requirements that could push this culture philosophy that placed continuous and market share.
management system, management development which are customer focus, improvement as the objective of the system.
responsibility, resource management, customer related process, and customer Several requirements are mentioned in the Even though all those previous researches
product realization process, and satisfaction. On the customer focus standard in order to support this principle have shown that ISO 9001 implementation
measurement, analysis and improvement requirement, Organization is required to mainly in measurement, analysis, and has positive influence to sales improvement,
(ISO 9001, 2008). These requirements are ensure that all customer requirements is improvement requirement section. the studies was conducted using self report
not only set what the core process should identified and met. On customer related assessment methodology. This method has
be fulfilled by an organization but also process requirement, organization is Previous Researches potentially to lead the study result will bias
other supporting processes such as goal required to have a system to identify, Several studies have proven that the and full of respondent tendency. Despite
setting process, human resource training, review, and communicate related to ISO 9001 implementation could assist that condition, this study will try to fix and
infrastructure maintenance, and others. customer requirements. Meanwhile, the companies to achieve its «bottom line» strengthen those previous researches by
customer satisfaction requirement pushes goal which is sales improvement. Magd, using participatory action research. In order
Second, ISO 9001 direct organization to organization to monitor its customer Kadasah and Cury (2003) explained to ensure that only the implementation of
control the sales operation processes. One perception related to its performing some research as follows. Sun (1999) ISO 9001 that influence in achieving the
of the requirements of ISO 9001 is the services. examined the certified Norwegian performance indicators of sales operation,
organization is required to map out the companies, among the results obtained the research object is designed not to
processes needed, determine the sequence, Fifth, ISO 9001 directs the sales operation’s is that there is a positive relationship develop programs or other marketing
interaction and control of these processes human resource aware and competent between the implementation of ISO 9001 systems.
(of ISO 9001, 2008). This will lead the sales of their duties and responsibilities. ISO with a decrease in customer complaints
operation processes will be identified. Each 9001 requires the organization to set the and increase profitability. Tan and Lim Methodology
process will be cleared who the owner, personnel standard competency and Teck Sia (2001) examined 100 Malaysian The Research Design
the sequence and interaction between have a mechanism to assess its personnel companies certified, the results show This research is action research at a
processes. This will avoid overlapping competency and full fill the competency 31% felt decreased production costs, management consulting and training
process, responsibilities, and authority of gap. ISO 9001 also requires the organization 12% experienced an increase in market company. In this context, the researcher was
the personnel of the sales operation. to have a mechanism to evaluate the share, and 12% had export potential. involved as a system designer, implementer,
effectiveness of competency gap treatment. Buttle (1996) examined 1.220 companies and evaluator.
Third, ISO 9001 directs organization to have in the United Kingdom and found that
proper documentation. ISO 9001 requires Sixth, ISO 9001 directs the sales operation most companies feel gain increased The research object was established in
the organization to develop management to have adequate and well maintained marketing. Casadesus et al (2000) studied 1996. Specifically, the research object
systems manual, document and record infrastructure. At this case, ISO 9001 require 500 firms in Spain as well, and Padibjo provides consultancy and training
control procedure (ISO 9001, 2008). This the organization to set a mechanism to Quazi (1998) examined firms in Singapore in quality management, strategic
will allow the organizations to maintain all identify and maintain the infrastructure also obtained similar results. Sissel (1996) performance measurement and standard
data, information, and knowledge of sales in term of infrastructure and working conducted a survey over 1.880 companies based management. The research object
operations. This is important for avoiding environment clauses. and obtained 85% felt increased its market has three divisions’ namely operational
the dependence on personnel. share. Wayhan et al (2002), Aarts and Vos divisions, project development division,
Seventh, ISO 9001 directs sales operation to (2001), Eklof et al (1999) revealed that the and marketing divisions. This research was
Fourth, ISO 9001 directs the customer- looking for continuous improvement. ISO main benefits of implementing ISO 9001 is conducted in the marketing division which

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has the primary duty and responsibility of 2009. During 2008, we conducted the sales We observed and identified existing system Sales Operation Model. Based on the existing
managing and running the sales operations operation performance indicators and ISO includes management process, resource problem, the sales operation model indicator
activities. 9001-based sales operation management (support) process, product realization (core) was developed as follows. Research object’s
system model development. process, and measurement, analysis, and sales operation performance indicators can
This research is divided into three main Data collection methods on this phase improvement process. be divided into two indicator categories
stages as shown in Figure 1. The first stage include a review of corporate data and which are process indicators and outcome
aims to identify indicators that can be used documents, informal interviews, discussions The model implementation was performed indicators. The process indicators are used to
to assess the performance of the research and meetings with the Board of Directors on 2009. The implementation begins set the sales operation processes standard.
object’s sales operation. The second stage and Chief-Division Head. with the training and socialization of the Meanwhile, the outcome indicators are a
aims to develop a process model of ISO 9001 new system for sales force. Throughout measure of the effectiveness of whole sales
based sales operation management system. The data that collected is existing sales the implementation, researcher acted operation management system.
The third stage aims to implement and operation indicators types and sales as Head of Marketing Division to ensure
evaluate the effectiveness of the process operation management system. The sales that the implementation is going as Process indicators were developed based
model. The evaluation was done based on operation indicators type is measurement planned. In addition, to ensure that only on the core process of the sales operation.
the comparison between the performance criteria that using by the company to the implementation process model factors These indicators are number of leads,
indicators generated in the first stage. evaluate and monitor its sales operation that influence in achieving the performance response time to demand prospects, the
performance. We identified two level indicators of sales operation, the research number of presentations, and follow-up of
indicators which are indicators used by object does not develop programs or other the old client result (customer retention).
Figure 1. Research Design Director and Division Head. marketing systems. For the purposes of
evaluating the effectiveness of applying the The outcome indicators were derived
Performance Indicator The sales operation management system model, data was used based on the results based on the company’s business plan. The
Identification data collected using framework of ISO 9001 of the annual company meeting before and research object’s outcome indicators are the
as shown in figure 2. after implementing ISO 9001-based sales value of the contract (sales) and number of
operation management system model. contracts obtained.
Figure 2. ISO 9001 Framework

Process Model Results and Discussions ISO 9001 Based Sales Operation
Management Sales Operation Performance Indicators Management System Model
Development
Responsibility Initial Condition. Before the implementation Initial Condition. Before the implementation
of ISO 9001 sales operation management of ISO 9001 sales operation management
system, the research object mainly system, the research object only see the sales
monitor and measure the sales operation operation as the role of marketing function.
Model Implementation Resource Measurement,
analysis performance using the sales achievement. At the management and improvement
and evaluation Management & Improvement Other else was the prospect status. Both process, there is a marketing planning,
indicators were monitored by Director and but in other side the organization lack of
Division Head using the weekly and monthly control in executing the plan. However
meeting. This condition lead the company the Division head didn’t have a system to
Product
The Data Collection Methods could not quickly identified the causing monitor daily sales operation and improve
Realization
The study was conducted during two years problem of the unachieved sales target. its performance.
of January 1, 2008 until December 31,

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At the resource (support) process, there be fulfilled by the sales force or other person are daily, weekly, and monthly. Each of these has a mechanism to set, evaluate, and full
is no a system to identify the necessary in charge. To ensure everyone has the same activities has the different kind report. fill the competency gap. Second, from
competency for sales force and how to knowledge, procedures and manual was the aspect business process, the ISO 9001
evaluate it. This leads the sales force lack developed and distributed. The Comparison Before implementation could make the flow
of competency in selling the product. The and After the Model Implementation process mapped and avoid overlapping
dependency to consultant assistant is very On the project opportunities information Before implementing the sales operation process, responsibilities, and authority of
high. handling process, sales force is required to process model, the research object did not the personnel of the sales operation. This
identify the prospect’s requirements and monitor and measure process indicators. is caused ISO 9001 sales operation model
At the product realization (core) process, preferences in selecting service providers’ Therefore, the comparisons can be displayed has to identify its flow process and create a
there is no a system that ensure sales force candidates. The result of these activities is the outcome indicator. The result is shown standard process. Third, from the prevention
identify the customer requirement in order would be an input to determine strategies in Table 1. aspects, the ISO 9001 implementation could
to win the bid. However, this condition leads for the subsequent processes. In simple increase the organization awareness of
the product offered was very standard and terms, this process model wants what is Based on table 1, it can be seen that after sales operation problems. This caused ISO
did not customized as Customer needs. On given by the organization in accordance the model implementation, the research 9001 sales operation model has to monitor
other words, the product competitiveness with the needs and preferences of object has increased outcome indicators. process indicators that could lead the quick
tends to low. prospects. So that the opportunity to gain In terms of the acquisition contract, the detection of problems.
contract greater. research object achievement has increased
Beside that, there is no minimum standard by 39% while the terms of the contract Discussion
to execute the core process. There is one Sales support processes are the processes value increased by 52%. The performance indicators developed in
condition that the company lost the bid required to support the effectiveness this study consists of two types of indicators
because they didn’t follow up the prospect. of core sales process implementation. which are process indicators and outcome
Tabel1. Outcome Indicator Comparison between Before
These processes include the sales force and After the Implementation Model indicators. This is based on the idea that the
Sales Operation Model. In order to fix initial competency evaluation process, sales force results will be achieved when the process
No. Indicators Before After
condition, sales operation management training, infrastructure support process, indicator is reached. These indicators are
system model that was developed consists documentation process, and outsourcing 1 Contact 708.000* 1.096.150* in accordance with familiar performance
Value
of three main process groups which are the marketing personnel selection process. measurement models such as Balance
core sales processes, support processes, and 2 Contact 23 32 Score Card or Service Score Card in which
Number
management and improvement processes. Process management and improvement is a the organization is not only measures
The model is shown in the figure 2. process that serves to plan and improve the * in 1000 IDR the outcome parameters (lag indicators)
effectiveness of the core sales processes. but also the process parameters (lead
The core sales process consists of prospects This process group consists of planning Sales Operation Improvements. Even indicators).
searching process, project opportunities process, monitoring process, and regular though, the process indicators could not
information handling process, preparation evaluation process. In the planning process, be compared directly, there is some point The sales operation management system
of bid proposals process, presentations, target and acceptance criteria of each of improvement that could be highlighted. process model was following the ISO 9001
follow-up process, the process of preparing process was developed. Monitoring and First, from the human resource aspect, the process model which is also composed of
the contracts, and customer care processes. evaluation process was conducted by the ISO 9001 implementation could increase three main groups of product realization
Each core process should have the Head of Marketing Division. In general, the the competency of sales personnel. This processes (core processes), process resource
acceptance criteria and standards that must processes are divided into three areas which is caused ISO 9001 sales operation model management (process support), the process

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of management responsibility as well as as early as possible and make continual Figure 3. Sales Operation Management System Model

measurement, analysis, and improvement improvements. Fifth, the model did not only
(process management and improvement). pay attention to the outcome indicators but
In accordance with the requirements of also process indicators that trigger it.
ISO 9001, each process has an acceptance
criteria and standards. In addition, each The Managerial Implications. The research
critical process was controlled by a result shows the importance of monitoring
documented procedure. the process indicators, not only the outcome
indicators. The management of company
The model implementation has proved could identify the process indicators by
increasing operation sales performance. mapped their sales operation process and
This caused the model considering decide the critical items to be monitored.
comprehensive sales process elements, However, the time for measuring the
not only the core but also the supporting process indicators is should be set at shorter
processes and management and time than outcome indicators. For example,
improvement. These conditions make the monitoring of response time to demand
the system work effectively. In addition, prospects, this indicator should be daily
the process model also measures process monitored.
indicators to make the research object could
detect weaknesses and make improvements The research result also shows the
quickly. From that condition, it also can be importance of sales operation practitioners Having developed performance indicators Based on those findings, it could be said that
said that some strength point of this model to notice not only the core process of and process model in accordance with the it is important for a company to monitor
is as follows. First, the sales force is required sales operation but also support process, sales operation, the implementation results its sales operation process and outcome
to identify the requirements and preferences mainly human resource process. The sales showed that the model can work and indicators. This will lead the company could
of service provider selection. Outputs of operation practitioners could work together provide some benefits such as increasing quickly identified the causing problem of
this activity become the input for others with human resource personnel to develop both the number and value of the contract. the unachieved sales target. Beside that,
process such as preparing proposals and the personnel standard competency and In addition, the model also identifies the an effective sales operation management
presentations. This resulted in the research competency evaluation mechanism. process indicators such as: number of leads, system should consider, integrated, and
object has an advantage in competing response time to demand prospects, the included the core process with management
among others providers. Second, the model Conclusion number of presentations, and follow-up of and improvement process and support
requires the research object to set process ISO 9001 is a generic standard so it can be the old client result (customer retention). (resource) process. For resource process, it
standard. This makes the process related to applied to all types of organizations both in Although they can not be compared directly, should be noted that standard competency
prospect will be well managed. Therefore, the overall organization as well as in certain these indicators can also be predicted of sales force should be decided and
it is expected the image and relationships parts of the organization. This research increase by the implementation of this evaluated.
with the prospects will be good. Third, the has examined the implementation of ISO model. This is based on the experience of
model also covers support processes that 9001 as the base model of a management research object had reached a contract
enable the core processes are well running. consulting and training company sales failures caused by these indicators before
Fourth, the model tries to detect problems operation management system. implement the model. However, this is not
repeated when the model was applied.

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References
Buttle, F (1996). An Investigation of the
Willingness of UK Certificated Firms to
Sun, H (1999). Diffusion and Contribution of Total
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Tan, L.P and Lim Teck Sia (2001). ISO 9000: The

PEMASARAN JASA
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Rully Arlan Tjahyadi
Magd, Hesham dan Nabulsi, Fadli (2007). ISO Van den Heuvel, Jaap, Koning, Bogers, Berg, Universitas Kristen Maranatha, Bandung
9001: 2000 Implementation in UAE: An and van Dijen, (2005). An ISO 9001 [email protected]
Exploratory Study, e-TQM College Working quality management system in a hospital
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Vol. 18 No. 5, pp. 361-36 satisfaction influence multidimensional commitment, repurchase Abstract
intention, and advocacy intention. This research also invetigates the
impact of multidimensional commitment on repurchase intention and
advocacy intention. The model was examined in the context of a service
relationship—people processing. This study conducted at Bandung
using survey to 200 respondents. Structural equation modelling (SEM) is
used to examine the effect of customer satisfaction on multidimensional
commitment, repurchase intention, and advocacy intention, and also
examine the effect of multidimensional commitment on repurchase
intention and advocacy intention. This research found that customer
commitment (affective and normative) serves as a partial mediator of
the customer satisfaction-future intention relationship. This research also
found that normative commitment was strongly and positively related
to repurchase intention. Affective commitment was positively related to
repurchase intention and advocacy intention. In addition, this research
found that customer satisfaction was strongly and positively related to
multidimensional commitment. Customer satisfaction was strongly and
positively related to repurhase intention and advocacy intention. These
findings have important implication that service providers have to focus
attention on both the evaluative force (customer satisfaction) and the
relational forces (customer commitment) that derive crucial customer
behaviors.

Keywords: kepuasan pelanggan, loyalitas pelanggan,

komitmen multidimensional

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